Why has Huawei been so successful when entering new oversea market？
At the beginning of the 21st century, it has shocked the world that Huawei technology, an IT company from a developing country, China, has achieved great success in the international market which has suppressed Nokia to be the second largest telecommunication company. Huawei is a private company, which differs from other Chinese successful companies that were supported by the government. It was established in 1988 in Shenzhen, Guangdong province. The company had a tough beginning, and started selling imported products before they could manufacture them. It grew rapidly by dominating global …show more content…
As a result of this, the experience and wealth of expanding markets in developing countries had a significant effect on the company when they prepared to enter western markets, which also made themselves more confident, it was not easy to explore oversea countries for a company from a developing country.
This suggests that restricted by world’s major companies in domestic market, Huawei stepped into international markets, while first entering developing countries had achieved success as people in those countries experienced the same level of expenditure as China did.
2) Sideward-Crawl Crab Strategy
What is Sideward-Crawl Crab Strategy?
Sideward-Crawl Crab Strategy means encircling cities from the countryside, while the special strategy was used by the Chinese army defended the emery to protect their homeland used the strategy. It was firstly mentioned by the prime chairman Zedong Mao which during the war against Japan’s Aggression in the 1940s.
Huawei company learnt this special stagey in a business way, and Mr. Ren Zhengfei, a former People’s Liberation Army (PLA) officer, when they launched C&C digital telephone switch, Mr. Ren’s strategy in order to step into China’s domestic market which was dominated by foreign MNEs, followed the Chinese strategy “encircling cities from countryside”, as the former chairman Zedong Mao said, which is significantly efficient(Low, 2007).
Huawei stepped into the international market for the start of the long journey, and
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